Prospective and current homeowners weigh in on Canada’s housing market

A new survey by a large national bank reveals that despite the constantly changing homebuying market, Canadians’ desire to own a home remains strong. A significant 74% of prospective homeowners still feel hopeful about purchasing a home within the next five years. However, more than half (58%) acknowledge that it will likely take them at least two years to be financially ready.

Financial Strategies for Homeownership

To achieve their goal, many prospective buyers are taking various financial steps:
– 56% are reducing non-essential expenses.
– 52% plan to invest more of their money.
– 32% are working with a financial professional to develop a homeownership plan.
– 23% are taking out loans.
– 8% are exploring the trend of purchasing property with someone other than a partner, such as a friend or family member.

Barriers to Homeownership

Financial constraints, unfamiliarity with the mortgage process, and market uncertainty are significant barriers. The survey found:
– 85% of prospective homeowners are not very comfortable with the homebuying or mortgage process.
– 95% have concerns related to the mortgage or homebuying process.
– Over half (53%) would feel more confident if they had quick access to professional advice.

Emotional Impact

The homebuying process can be overwhelming. The survey shows:
– 46% have felt stress.
– 41% have felt anxious.
– 34% have experienced frustration.

Advice to Canadian is to remain patient, stay informed, seek professional advice, and have a plan to ease stress and uncertainty.

Evolving Homebuying Experience

The Canadian homebuying process has become more challenging over time due to rising home prices and a housing supply shortage. The survey found that:
– 82% of current homeowners purchased their homes over six years ago and found the process easier, largely because they could secure homes within their budget.
– 76% of prospective homeowners are concerned about current house prices.
– 61% are worried about the current interest rate environment.

Additional Insights

– 69% of prospective homeowners do not have a personalized financial plan, though 59% plan to develop one soon.
– 72% have not sought advice from professionals or online sources about homeownership.
– Prospective buyers also have concerns about knowing the best time to buy (44%) and understanding which mortgage options are most beneficial (36%).
– Only 5% of respondents have no concerns about the mortgage or homeownership process.